TWV Meeting Brief “Moving Past Acceptance” Mr. Tison 6 FEB 2012

2 of 16 Development of Strategic Guidance Comprehensive Review Sec Def Gates, April-May 2011 Defense Program Guidance June-September 2011 Strategic Choices Review October-November 2011 Defense Strategy December 2011 New Strategic Guidance President, January 2012 President’s Framework April 2011 President’s Framework April 2011 Budget Control Act August 2011 Budget Control Act August 2011

President’s New Strategic Guidance 3 of 16 The Department of Defense needed to make a strategic shift regardless of the nation’s fiscal situation The guidance is the first step to build the joint force of 2020, a force sized and shaped differently than the military of the Cold War, the post-Cold War, or the force built over the past decade to engage in large-scale ground wars. Four Overarching Principles guided development: 1.Maintain the worlds finest military 2.Avoid a hollow force – Smaller, ready, and well-equipped is preferable 3.Savings must be achieved in a balanced manner 4.Preserve the quality of the all-volunteer force Structure and pace the reductions to the ground forces in a way that they can surge, regenerate and mobilize capabilities needed for any contingency

4 PB FYDP Projections vs. Actual Defense Budget

SLIDE #5 One way to “Move Past Acceptance” 4 of 16

Army Strategy (as nested with the Defense Strategy) in a fiscally constrained environment requires us to change vehicle procurement: fleet size, vehicle cost and the acquisition strategies for procurement. I.Review of TWV Strategy and Fleets II.Re-examining Modularity III.Equipping or Modernizing IV.The Iron Triangle Applied V.How to best Modernize VI.Buy less, more often VII.Conclusions 5 of 16 LTC Lockwood/FDL/ As of 27 JAN 2012 Tactical Wheeled Vehicle Assessment

Tactical Wheeled Vehicle Portfolio Purpose and Objectives Purpose: The Tactical Wheeled Vehicle Portfolio provides movement of personnel and cargo, and mobility for a majority of mission support systems, i.e., Prophet, ITAS, LRAS, etc. Joint Light Tactical Vehicle (JTLV) Tech Demonstrators HMMWV Selected Replacement w/Existing Vehicles MRAP Family of Vehicles FMTV Procure Armor Capable Vehicles Line Haul FMTV Line Haul JLTV Program Replaces ~ 1/3 of LTV Fleet PLS HMMWV HEMTT Recapitalization/ Modernization Buys Back: - Performance - Mobility - Armor Capability (HEMTT & PLS) Integrates Network Extends Service Life Develop, acquire and field the Joint Light Tactical Vehicle Transform Replace Improve Replace legacy platforms with systems capable of meeting the threats of today and tomorrow Conduct recapitalization of current vehicles so they remain relevant and capable Fleet Operations Equip forces IAW ARFORGEN to meet all mission requirements Equip Army with vehicle training sets and simulation devices Fleet Size and Mix Shape fleet size and mix to ensure long-term affordability; reduce fleet size approximately 15% Replace vehicles on average every 40 years and recapitalize them midway Protection Accept three tiers of armor protection: unarmored, B-Kit/Frag Kit and MRAP/JLTV Provide armor-capable vehicles to equip Available force pool and contingency forces (≥ 50% of fleet) Provide armor kits to equip Available force pool (≥ 30% of fleet) Industry Strength/Technology Advancements Through competition, promote healthy industrial base, including government depots Improve fleet fuel economy by 10-15% for new/recapitalized vehicles Implement reliability/maintainability improvements, design commonality and competitive support strategies to reduce total ownership costs TWV ObjectivesTWV Means LTC Lockwood/FDL/ of 16 As of 27 JAN 2012

Light Tactical Vehicle Fleet with MRAP Portfolio LTC Lockwood/FDL/ Facts: Current fleet on hand inventory is 160,691. MRAP and M-ATV are additive to the fleet ~17,000 and will remain as capability set MRAP and M-ATV will require RECAP beginning in FY27 Light Fleet requirement could go below 100K FY10 REQ was 153,244, FY12 REQ is 139,527, FY18 REQ is 136,758. Will divest excess legacy HMMWVs as requirements are reduced. Average Age in years with MRAPs 7 of 16 As of 27JAN 2012 AVG AGE: 23.5 YRS AVG AGE: 3.5 YRS

LTC Lockwood/FDL/ Light Tactical Vehicle Fleet without MRAP Portfolio Facts: Current fleet on hand inventory is 160,691. Light Fleet requirement could go below 100K FY10 REQ was 153,244, FY12 REQ is 139,527, FY18 REQ is 136,758. Will divest excess legacy HMMWVs as requirements are reduced. Average Age in years 8 of 16 As of 27 JAN 2012 AVG AGE: 23.5 YRS AVG AGE: 3.5 YRS - 20,000 40,000 60,000 80, , , , , ,000 FY11FY12FY13FY14FY15FY16FY17FY18FY19FY20FY21FY22FY23FY24FY25FY26FY27FY28FY29FY30 Legacy Nonarmored HMMWV Nonarmored HMMWV (Recap) AMBULANCE UAH JLTV LTV Requirement (SACS) 50% Armor Cap. Line AVG AGE: 17.5 YRS AVG AGE: 23.5 YRS AVG AGE: 3.5 YRS

FY10 Requirement: 77,014, FY12 Requirement: 74,380, FY18 72,906 (Previous FY18 Requirement 84,738 ) : 4K requirement reduction Force Structure changes will most likely remove majority of M900 series in the POM Cycle. ~22K M900 series will be divested by FY16; ~3.6K FMTV A0s will be divested by FY16. Conduct depot sustainment repair (Reset) of armored MTVs as they are retrograded from theater. Requirement could drop 20-30K within this upcoming POM Cycle Medium Tactical Vehicle Fleet LTC Lockwood/FDL/ Average Age in years 9 of 16 As of 27 JAN 2012 Armor-Capable FMTV Unarmored FMTV Legacy MTV FY12FY13FY14FY15FY16FY17FY18FY19FY20FY21FY22FY23FY24FY25 Quantity of Vehicles MTV Fleet Projected Inventory Legacy MTV Unarmored FMTV Armor - Capable FMTV MTV SAC Requirement 50% Armor Cap. Line

Fleet has grown from 10K in requirements in FY00 to FY18 Anticipate HTV fleet could drop to 30K Recapitalize vehicles to modernize and extend service life (when economically feasible) Modernize: Engineer formations by replacing the M916 Line Haul Tractor with the M983 LET PLS Trailers by recapitalizing them to integrate the Container Transfer Enhancement (CTE) onto the trailer CHUs with new procurement of Enhanced Container Handling Unit (ECHU) LTC Lockwood/FDL/ Heavy Tactical Vehicle Fleet In the aggregate, we are 50% Armor Capable for the HTV Fleet! Average Age in years 10 of 16 As of 27JAN 2012 Armor-Capable HEMTT Armor-Capable PLS Armor-Capable Line Haul Armor-Capable HET Unarmored HET Unarmored Line Haul Unarmored PLS Unarmored HEMTT - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 FY12FY13FY14FY15FY16FY17FY18FY19FY20FY21FY22FY23FY24FY25 Quantity of Vehicles HTV Fleet Projected Size Unarmored HEMTT Unarmored PLS Unarmored Line Haul Unarmored HET Armor - Capable HET Armor - Capable Line Haul Armor - Capable PLS ArmorCapable HEMTT 50% Armor Cap. Line HTV SACS Requirement

XX Armor Brigade Mechanized Brigade Armor Brigade Engineers Intelligence Military Police Air Defense Field Artillery Aviation Division Troops Logistics Support Division Cav (Recon) Chemical Signal Division FROM:18 Divisions 10 AC / 8 ARNG BCT Combined Arms Armed Recon Combined Arms Fires I ntelligence Engineer Signal Chemical MP/Security Logistics X TO: 73 Brigade Combat Teams 45 AC / 28 ARNG Brigade Based Modular Army Provides: 30% increase in AC combat power 50% increase in rotational pool Deployable, joint capable HQ Standardized AC & RC designs Designs compatible with future force Increased AO Increased Mobility, Versatility and Sustainability Trades efficiencies of the task organized division for increased strategic flexibility and depth created by BCTs capable of independent operations. Modularity + Structure Growth Increased the Army’s TWV Requirement Affordable? LTC Lockwood/FDL/ of 16 Re-examining Modularity As of 27JAN 2012

Equipping vs. Modernization? Age of the Fleet: 7 to 9 years Requirements: 262K EQUIPPING Improving Decreasing OKAY! Protection/Mobility/Lethality Development Funding MODERNIZATION Iron Triangle Decreasing CHALLENGING MRAP LESSONS 12 of K >200K As of 27 JAN 2012 LTC Lockwood/FDL/

Cost? Time? Performance? You can get two out of three which do you choose? Cost: Over $50B for ~29K vehicles (All Services) Time: Speed of production and integration phenomenal Speed of production and delivery, sacrificed overall performance and cost Performance: based on blast protection - outstanding first LRIPs of MRAPs didn’t provide off road mobility reliability sacrificed for speed of delivery continuing to work non-standard fielding issues LTC Lockwood/FDL/ The Army needs to maintain MRAP level protection for future vehicles, while controlling cost, improving performance and integrating the network of the future! The Iron Triangle Applied 13 of 16 As of 27JAN 2012

The Army will continue to buy vehicles into the future. The buys will be for less vehicles, more often to reduce the increment costs and to infuse new technology into the vehicle. Performance and affordability are more important now than ever! LTC Lockwood/FDL/ How Best to Modernize? 14 of 16 As of 27 JAN 2012

Buying Less, More often With the outlook of fiscal austerity in future Defense Budgets: We will need to buy less, more often! Will not be able to buyout entire fleets; will require multiple purchase cycles Multiple buys will allow technology be integrated into the platforms during manufacturing, rather than ECPs Continue to leverage Industry investment into research and design of prototypes LTC Lockwood/FDL/ JLTV Tech Demonstrators BAE JLTV Tech DemonstratorGTV JLTV Tech DemonstratorLockheed Martin JLTV Tech Demonstrator 15 of 16 As of 27 JAN 2012

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